Financial management


Objectives of Financial Management



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Objectives of Financial Management


Building on those pillars, financial managers help their companies in a variety of ways, including but not limited to:

Maximizing profits by providing insights on, for example, rising costs of raw materials that might trigger an increase in the cost of goods sold.

Tracking liquidity and cash flow to ensure the company has enough money on hand to meet its obligations.

Ensuring compliance with state, federal and industry-specific regulations.

Developing financial scenarios based on the business’ current state and forecasts that assume a wide range of outcomes based on possible market conditions.

Dealing effectively with investors and the boards of directors.

Ultimately, it’s about applying effective management principles to the company’s financial structure.



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